Amended in Senate April 13, 2015

Amended in Senate April 6, 2015

Senate BillNo. 471


Introduced by Senator Pavley

February 26, 2015


An act to add Chapter 10 (commencing with Section 39950) to Part 2 of Division 26 of the Health and Safety Code,begin delete to add Section 75214.5 to the Public Resources Code, and to amend Sections 10537 and 10538 of, and to add Section 79746.5 to, the Water Code,end delete relating to water.

LEGISLATIVE COUNSEL’S DIGEST

SB 471, as amended, Pavley. Water, energy, and reduction of greenhouse gas emissions: planning.

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(1) Existing

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begin insertExisting end insert law designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. Existing law requires all moneys, except for fines and penalties, collected by the State Air Resources Board from the auction or sale of allowances as part of a market-based compliance mechanism relative to reduction of greenhouse gas emissions, commonly known as cap and trade revenues, to be deposited in the Greenhouse Gas Reduction Fund, and to be used, upon appropriation by the Legislature, for specified purposes.

This bill would require the state board, in cooperation with various other agencies, to develop an emissions inventory of greenhouse gas emissions from the water system in the state, using best available data. The bill would provide water recycling, wastewater treatment, water end-use efficiency, water technology improvements, best management practices, and other projects that reduce water system greenhouse gas emissions shall be eligible for funding from the Greenhouse Gas Reduction Fund.begin insert The bill would also make legislative findings and declarations, and a statement of legislative intent, with regard to the nexus between water and energy and water and reduction of greenhouse gas emissions.end insert

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(2) Existing law continuously appropriates specified portions of the annual proceeds in the Greenhouse Gas Reduction Fund to various programs including 20% for the Affordable Housing and Sustainable Communities Program, administered by the Strategic Growth Council. Existing law specifies the objectives for the program and identifies categories of projects eligible for funding under this program.

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This bill would require the council, in implementing these provisions, to give special consideration to awarding funds to eligible projects that, in addition to existing objectives and goals, would also result in reduced greenhouse gas emissions by the water system in the state.

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(3) The Integrated Regional Water Management Planning Act authorizes a regional water management group to prepare an integrated regional water management plan, in accordance with certain procedures, for the implementation or operation of specified qualified projects or programs pertaining to water supply, water quality, or related matters. The act defines “regional projects or programs” as projects or programs identified in an integrated regional water management plan that accomplish specified water-related goals, including an increase in water supplies through the use of certain means.

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This bill would specifically include projects or programs that reduce the greenhouse gas emissions from energy used to acquire, transport, treat, or distribute water as a regional project or program.

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(4) Existing law, the Water Quality, Supply, and Infrastructure Improvement Act of 2014, approved by the voters as Proposition 1 at the November 4, 2014, statewide general election, authorizes the issuance of general obligation bonds in the amount of $7,545,000,000 to finance a water quality, supply, and infrastructure improvement program. The bond act provides that the sum of $810,000,000 is to be available, upon appropriation by the Legislature, for expenditures on, and competitive grants and loans to, projects that are included in and implemented in, an adopted integrated regional water management plan and respond to climate change and contribute to regional water security. The bond act authorizes the use of $100,000,000 of those funds for direct expenditures, and for grants and loans, for certain water conservation and water-use efficiency plans, projects, and programs.

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This bill, in implementing the direct expenditures, grants, and loans for these water conservation and water-use efficiency plans, projects, and programs, would require special consideration be given to expenditures, grants, and loans that would result in reduced greenhouse gas emissions.

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(5) The bill would make legislative findings and declarations, and a statement of legislative intent, with regard to the nexus between water and energy and water and reduction of greenhouse gas emissions.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P3    1

SECTION 1.  

(a)  The Legislature finds and declares all of the
2following:

3(1) Water and energy resources are inextricably connected. This
4relationship is known as the water-energy nexus.

5(A) The energy used to drive California’s water system,
6including, but not limited to, the fuels used to power groundwater
7pumps, transportation, treatment and disposal systems for water
8and wastewater, heating and cooling of water in buildings and
9other facilities, and the delivery of water to end users, accounts
10for nearly 20 percent of the total electricity usage, 30 percent of
11nonpower-related natural gas consumed, and an unknown quantity
12of greenhouse gas emissions associated with that energy
13production.

14(B) The water used to drive California’s energy system,
15including, but not limited to, the water used to turn turbines for
16hydropower, to produce steam and cooling systems for
17thermoelectric power, and to extract and refine oil and gas,
18represents a substantial portion of our state water demand.

19(C) Consequently, saving water saves energy, and vice versa.

20(D) Because the production of energy often results in the
21emission of greenhouse gases, there is substantial potential for
22emission reductions in the water system.

23(2) Planning for water use is often conducted without
24consideration of energy use or greenhouse gas emissions. Similarly,
25planning for energy and reduction of greenhouse gas emissions is
26often conducted without consideration of water resources. As a
27result, local and state agencies may not be identifying projects that
P4    1best serve water and energy investments to maximize greenhouse
2gas emissions reductions.

3(b) It is the intent of the Legislature, in enacting this act, to:

4(1) Provide the best available data on the water-energy nexus
5so that it may be included in the scoping plan update prepared
6pursuant to the California Global Warming Solutions Act of 2006
7begin delete (Ch. 488, Stats. 2006).end deletebegin insert (Division 25.5 (commencing with Section
838500) of the Health and Safety Code).end insert

9(2) More closely integrate the planning for water, energy, and
10greenhouse gas emissions.

11(3) Enable opportunities for innovative projects and programs
12that reduce the greenhouse gas intensity of our water system in
13order to access eligible funds.

14

SEC. 2.  

Chapter 10 (commencing with Section 39950) is added
15to Part 2 of Division 26 of the Health and Safety Code, to read:

16 

17Chapter  10. Emissions From The Water System
18

 

19

39950.  

(a) The state board, in cooperation with the State
20Energy Resources Conservation and Development Commission,
21the Public Utilities Commission, the State Water Resources Control
22Board, and the Department of Water Resources, shall develop an
23emissions inventory of greenhouse gas emissions from the water
24system in the state, using best available data.

25(b) Water recycling, wastewater treatment, water end-use
26efficiency, water technology improvements, best management
27practices, and other programs that reduce water system greenhouse
28gas emissions shall be eligible for funding from the Greenhouse
29Gas Reduction Fund.

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30

SEC. 3.  

Section 75214.5 is added to the Public Resources Code,
31to read:

32

75214.5.  

In implementing the program, the council shall give
33special consideration to awarding funds to eligible projects that,
34in addition to achieving the objectives identified in Section 75210
35and supporting the goals identified in Section 75214, would also
36result in reduced greenhouse gas emissions by the water system
37in the state.

38

SEC. 4.  

Section 10537 of the Water Code is amended to read:

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10537.  

“Regional projects or programs” means projects or
2programs identified in an integrated regional water management
3plan that accomplish any of the following:

4(a) Reduce water demand through agricultural and urban water
5use efficiency.

6(b) Increase water supplies for any beneficial use through the
7use of any of the following, or other, means:

8(1) Groundwater storage and conjunctive water management.

9(2) Desalination.

10(3) Precipitation enhancement.

11(4) Water recycling.

12(5) Regional and local surface storage.

13(6) Water-use efficiency.

14(7) Stormwater management.

15(c) Improve operational efficiency and water supply reliability,
16including conveyance facilities, system reoperation, and water
17transfers.

18(d) Improve water quality, including drinking water treatment
19and distribution, groundwater and aquifer remediation, matching
20water quality to water use, wastewater treatment, water pollution
21prevention, and management of urban and agricultural runoff.

22(e) Improve resource stewardship, including agricultural lands
23 stewardship, ecosystem restoration, flood plain management,
24recharge area protection, urban land use management, groundwater
25management, water-dependent recreation, fishery restoration,
26including fish passage improvement, and watershed management.

27(f) Improve flood management through structural and
28nonstructural means, or by any other means.

29(g) Reduce the greenhouse gas emissions from energy used to
30acquire, transport, treat, or distribute water.

31

SEC. 5.  

Section 10538 of the Water Code is amended to read:

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10538.  

“Regional reports or studies” means reports or studies
33relating to any of the matters described in subdivisions (a) to (g),
34inclusive, of Section 10537, that are identified in an integrated
35regional water management plan.

36

SEC. 6.  

Section 79746.5 is added to the Water Code, to read:

37

79746.5.  

In implementing Section 79746, special consideration
38shall be given to expenditures, grants, and loans that, in addition
P6    1to the purposes of Section 79746, would also result in reduced
2greenhouse gas emissions.

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